Kempower

Hi, everybody. I am so happy to have you all online today. My name is Paula Savonen and I am the VP of Communications for Kenpower and also your host today. Today with the members of the management team, we will present the financial results for 2022. And what a year we've had. We start the session with our CEO, Tomi Ristimäki. Tomi will present the key highlights for the year. And after Tomi, we continue with our Chief Operations Officer, Sanna Otava. Sanna will talk about how we collaborate with the supply chain, and also how we scale up the production. And after Sanna, we will have our Chief Market Officer, Jussi Vanhanen, giving market update and also talking about Kemper brand and how the Kemper brand has developed during the year. and we will end the session with our chief financial officer, Jukka Kainulainen. Jukka Kainulainen will present you the key financials for the year. I really hope you enjoy the presentations, and please ask questions from us, as many questions as you wish. You can type in the questions in Finnish or in English in the Q&A box on your screen, and we will take all the questions in the end of the session. But now, let's jump into the world of EV charging. Tomi, the floor is yours.

Thank you, Paula. So happy to be here. Actually, this is a great day to be here presenting Ken Power. With the result what we have, so... Let's go to the right slide. So definitely a positive year and really an extremely nice year, I would say from my side. We are growing faster than the market. These can be the figures when we compare how many DC chargers are installed in Europe, how much the market is moving compared to our sales figures, which are growing almost 300% still to this date. North America entry is progressing well. We communicated the location in North Carolina, and the actions are going forward to get our North American entry going forward. Revenue outside of the Nordics, more than 50% on the last quarter. We are seeing actually that we are following our strategy to also boost the market outside of our home turf, the Nordics. Capacity expansion continues successfully. Without that, we could not have done the amazing figures we're going to show you today, because we need, as a product company, we need the production, we need the capacity to produce the goods. Delivery reliability remained at excellent level. This is really true that we were in a difficult year when you look at the component situation. We have all read the press and what has happened on the market when everybody's talking about component shortage. Everybody's talking about the problems in there. I think we handled the situation well last year. We were able to deliver goods to our customers in time. So about the Q4 figures. This is really nice to look at the figures. 61.7 million order intake, 352% growth in the fourth quarter. Revenue was the record quarter for us, 37.8 million. And we are keeping our gross margin at good level, which looks at the profitability in the long term, that we can keep this at good level. So we are making a product company that can actually make it in the long run. Headcount 375. Doesn't sound big, but if we compare the end of 21 was 135, then this change is about two and a half times more people. So there has been a lot of job interviews during the year, and we have actually succeeded very well of finding not only the quantity, also the quality of people. So we have an extremely good team. Looking at the growth strategy execution in Q4, Regional expansion. Of course, we highlighted already in the beginning of the year that Europe is the key market where we make the sales. Nine subsidiaries in Europe. And then as a second main point of our strategy, what already was from the IPO times, we talk about the American market. The North American entry. The state of North Carolina communicated after the review period. We really see this region in US, it was according to our ESG goals, this is a really good state. Also from the point of view, what kind of people live there, what kind of people move there, there's several universities, 16 universities within the region. We see the workforce actually, and the able to actually grow in the area and develop in this area, not to mention the supplier base, which fits our needs very well. Customers. looking at our four customer groups. We look at our public charging market. We look at charge point operators. We have cooperated, that's also retail chains that we are selling directly to. Then we have the fleet operators, logistics companies. We talk about bus companies. Then OEMs, so we talk about customers who are selling our solution as part of their solution, part of their delivery content, and then finally our sales partners and installers. So we are growing in all of these groups. And it's really important when we look at our future that we have to grow in these customer groups and also geographically wide, but we divide the market risk. And we already explained later, we can show in the figures, We were lately still speaking about the seasonality of our business. You can see the effect on the numbers now. You can see how the Nordics reacts when it comes to Q4. It drops a bit, but now we had other markets that are filling the gap, just as we promised. And then as a customer base, I think the big change of the year. In social media, people have been talking about it's the year of the electric trucks. It was already said last year, and I think it's even more true this year, that there is, for us, there's several contracts in truck customer group. We had a large heavy vehicle manufacturer in Nordics actually making global contract or international contract with us. Then we are looking at the cooperation with Einride, one of the leaders in the commercial vehicle and autonomous commercial vehicle market. And then as a nice example project is our partners project in Australia with Jet Charge, that we were able to be together in the largest electric vehicle logistic fleet project in Southern Australia, which is showing that this movement is not only Europe, it's not only US, it's also happening all around the world. Roast has the execution even more. I think the key of product company, of course, is the production as well. Capacity expansion, it looks at the space, it looks at the people. And in the last half year, we recruited 115 people. Which if you put it into perspective, that total number in the end of 21 was 135. So almost the same number. So within the half year, we already hired as many people as we had in the end of 21. New factory ramp up is continued and we are going to develop that further. I will leave it then next to Sanna to tell you what we are doing and how these things actually affect us. But it's not a product company without products. So we started the deliveries with our adaptive voltage charging solution, which means actually that we are now able to deliver single chargers can charge every vehicle batteries that is on the market today. Before we had this separation that we have commercial vehicle chargers, personal car chargers. Now we have a system that can actually adapt and give the optimal charging performance based on the actual vehicle needs. Even better than before. And then, of course, to the bus segment, we have delivered before some pilots in this field, but still in some cities in Europe, it's very crucial that certain lines of buses need very high power charging. So that's why we have this pantograph charger. So these are these systems that charge from the roof of the bus with very, very high power. And then I give the stage to Sanna to tell about more.

So in year 21, our team succeeded to increase the production capacity with 500%. And last year we did it again. So last year we scaled our production with 500% by opening our final assembly factory in Lahti. And what next? We have three different streams how we scale up. First, we improve our existing production processes, improve our material flow and improve our production lead times. And second one, we are looking for different options, how we can increase our production capacity in Europe. And the third one, we are planning to open our first final assembly factory in US in North Carolina by end of this year. And the availability of electronic component, that was challenging last year. But however, thanks for the hard work done, we succeeded so well that there were no significant impacts on the customer deliveries. At the moment, we see that we have a strong position among global suppliers, because we have enough credibility as a company, and we have good connections and active dialogue with global component manufacturing companies at the moment. And it helps that the EV industry as is, is attractive for suppliers. We reduce our risk for continuing our dual sourcing strategy, and we also strengthened our purchasing team last year. And we see that this year we won't expect any or significant impact on our profitability because of those component and material prices. Thank you. And next, Jussi.